This data corresponds to Company B and their executives are seeking advice from a business analyst:•Beta = 1.1•Required return on debt (yield to maturity on a long-term bond) = 4%•Tax Rate =...

Cost of Equity using CAPM:
Cost of Equity = 3.6% + 1.1 (5% - 3.6%)
Cost of Equity = 3.6% + 1.1*1.4%
Cost of Equity = 3.6% + 1.54%
Cost of Equity = 5.14%
After tax Cost of Debt = 4% * (1-21%) = 3.16%
Calculation of WACC:
    Particular
    Amount
    Weight
    Cost
    WACC
    Debt
    $927.00
     ...